Compromise Agreements

August 26th, 2008

A Compromise Agreement is a legally binding contract between the employer and employee which sets out a mutual agreement to terminate the employment relationship. Such Agreements are used as a means to an end by both employer and employee to avoid the costs, risks and delay of possible legal proceedings and are also an opportunity for an employer of offer an enhanced package to an employee facing redundancy. However, despite their value in these circumstances, many employers and employees are unsure what they are and when they should be used.

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Posted in Employment Law Cases |

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